Retail reality: A closer look at ownership

One generation is preparing to move out of downtown retail and into retirement.

And the next generation isn't sure it wants to fill the void.

With the closing of Vollmar's Shoes, one of Le Mars' anchor businesses, the question has gone from theoretical to actual.

With the Le Mars Chamber of Commerce making months of calls, no one has stepped forward to open an independent shoe store or extend a chain to Le Mars.

While Vollmar's is first, it won't be the last, as several Le Mars retail owners are edging closer to retirement.

Le Mars Main Street Manager Mary Reynolds said finding a new generation of people to step into retail businesses involves educating them about the challenges and advantages of retail ownership.

There is no shortage of challenges to opening a retail shop today, Reynolds said.

Doing so requires an investment, which usually means working with local banks on financing.

For that, people must be prepared, she said.

Those hoping to open a business need to prepare a detailed business plan before talking to bankers about business loans.

And beyond dollars, business owners-to-be need to be prepared for a long-term commitment, she said.

Le Mars has seen several businesses open and close within 10 months, Reynolds said.

Experts say a new business needs at least two years to make it through the starting period.

"In one location we've seen three businesses in a year and a half," she said. "I think people think they can unlock a door and open a business and it's going to be great. It doesn't happen overnight."

Opening a business in Le Mars comes with its own challenges.

The community's population is larger than some, but not huge, Reynolds said.

And the city's proximity to Sioux City means people might decide to drive the extra half-hour to visit a larger shopping district.

The hours involved in owning and operating a retail business can also be demanding, she said.

However, Robin Grosenheider, a downtown business owner, said being an independent retailer meant she could take time off to see her daughter's games and performances when she was in school.

Grosenheider has owned Hotopp Jewelry and Gifts in downtown Le Mars with her husband, Dave Grosenheider, for 33 years.

As a young girl, Robin met the original owners of Hotopp's -- a German immigrant watchmaker and his wife, who brought gifts from Germany to sell in the shop.

When they retired, they sold the store to another, and eventually the Grosenheiders purchased it.

One of the biggest battles Robin sees for local retailers is getting people to shop in town.

"It really is a challenge to bring your business to life and make people want to support the community -- make it a fun place to shop," she said.

Under the umbrella of the chamber of commerce, a retail committee works together to draw people downtown and to other Le Mars businesses.

"We do draw a lot from Orange City, Sioux Center, Akron and Remsen, which is a huge draw for Le Mars," Robin said.

Another challenge is keeping a finger on the pulse of new merchandise trends -- but not pushing the envelope.

"It takes a couple of years for trends to come to the Midwest," Robin said. "A few times we found ourselves ahead of the trend and it didn't work for us."

That is changing some as people travel more and are exposed to different looks, she added.

Smaller retailers also have to up the ante when it comes to customer service, Robin said.

"We still gift wrap here -- you'll pay a high price to do that other places," she said. "And we have quite a variety downtown, but if someone is looking for something we don't have, given the chance, most retailers will help people get the product they want."

Robin said there are plenty of advantages and rewards in retail ownership.

A lot of that is the relationships she builds with people who come in the door.

"When someone comes back and tells you you've made their wedding special or their mother really liked the gift they bought, it's really amazing," Robin said. "I mean, we get thank you cards from customers."

In Robin's book, being a retailer downtown means getting to know the people -- sometimes two or three generations in one family.

Those connections keep customers coming back, and they also can lead to fulfilling friendships, she said.

"It's very rewarding to feel like you're part of that," Robin said.

Part of that feeling is being part of community the size of Le Mars, she added.

Many retail stores are almost part of the shoppers' neighborhood.

"The atmosphere in a small community is different -- people are happier and more pleasant and like their jobs," Robin said.

Another advantage is that small retailers collaborate on promotions to entice shoppers, helping each other in the process.

"When you're a small town, the more you can work together as a group, you have more chance of drawing people to your community," Robin said.

The downtown retailers are a cohesive group that strengthen the community, Reynolds said. The chamber is also part of that.

"If we know a business is being challenged in some way, we always step in to find out what we can do for them, what it is that they need," Reynolds said. "The community has to thrive and we want to keep it healthy. That's our goal."

That's just the beginning of the support available to new retailers as they face challenges, she said.

In developing a business plan or seeking business advice, potential retailers can work with volunteer counselors from the Service Corps of Retired Executives (SCORE), she said.

One volunteer counselor who works extensively with locals is Bill Bomgaars, of Le Mars.

The Le Mars Business Initiative Corporation (LBIC) has also helped downtown businesses in the past, according to Neal Adler, the group's executive director.

"We assisted with the bakery; we assisted with Sears," Adler said. "There's been discussions with some other things downtown that they're looking to assist with, so they do stand with that opportunity."

For Vander Meer bakery, he said, the LBIC offered to pay up to 30 percent of the interest on a loan for three years.

Adler said the group generally takes a back seat to local banks, which usually work with entrepreneurs starting a business venture.

"For us it's more of filling a gap somewhere," Adler said. "We're always open. If anybody has needs we're certainly here to discuss it with them."

Plymouth County also has a revolving loan fund to help new businesses get started.

Those owners can apply for $5,000 to $100,000 low-interest loans.

Applications and more information are available through local banks or by contacting Plymouth County Treasurer Linda Dobson.

"This is just additional financing -- secondary financing if they have their primary financing in place," Dobson said.

In addition, Main Street Le Mars can work with new businesses on applying for grants to help with signs and other exterior renovations.

"If you want to open a business, get a hold of us. Let us see if we can help you," Reynolds said. "We have avenues to help individuals that really, really do want to have a retail store downtown or anywhere in Le Mars."